We posted earlier this week on the government putting the new law in action and allowing foreigners from dozens more countries – including the gulf states — to buy property in Turkey. According to a new report from Jones Lang La Salle, many institutional investors (sovereign wealth funds, investment funds and private equity funds) are now planning to invest heavily in Turkey in the coming weeks, months and years.
The new law was passed in May, but rather than being passed as a blanket end to the reciprocity requirement in Turkish property law, we had to wait on the government deciding which of the previously banned countries would be added to the you-can-buy-in-Turkey list. According to JLLS the funds began turning their plans toward Turkey when the law was first passed, and now that the new list has been released and includes the gulf states, those plans can be put into action.
“We are seeing interest in Turkey from a range of investors including sovereign wealth funds, investment funds and private equity funds which have all strongly revived in 2012,” said Kivanc Erman, the company’s director of Capital Markets & Advisory for Turkey.
“As a whole, Turkey has been less affected by the global economic crisis which has been central in bringing more positive attention compared to its Western European counterparts,” Erman said, but that rising levels of transparency in the country have also played a part.
“A free flow of information added to a fair and constant application of local property laws is a big incentive for foreign direct real estate investment,” said Erman.
In other news, Turkish low cost carrier Pegasus Airlines has launched a new route between Istanbul Sabiha Gocken and Bologna in Italy. The flight, which is Pegasus Airlines’ third Italian route (it already flies to Rome and Milan), flies thrice-weekly with 737-800s.